I emailed back the person who sent me the initial email and gave him some feedback via Piggs. This is what he had to say. Not going to be a middleman, but it’s some food for thought, I guess.
A strong currency (meaning, our dollar can buy more Euros, for instance) is mostly a matter of interest rates and perception – if the int rate is high, then countries (primarily, but also some of the enormous institutional invest co’s) will buy your treasuries, etc., b/c the rate of return is higher – that leads to a thought your currency should strengthen.
However, w/ stronger currency, your products can cost more overseas, but since we don’t export that much (b/c our industrial base is basically nil), then it’s a mute point).
If we become (or any nation) too indebted, then countries begin wondering if you’ll ever be able to pay it back, so even if the int rate were to increase (i.e. in today’s world), that might not be enough to bring investors in.
The Flip side to high int rates is that people have a hard time borrowing b/c then they have to pay the banks more $$, so that is a drawback
